One tends to ignore post-retirement needs while working. Financial needs, however, grow manifold after retirement.

That’s when you need to look closely at a unit-linked pension policy that will allow an individual to build up a retirement fund for the future.

The biggest advantage is in the event of the death of the policyholder, the family receives a lumpsum with which it could address immediate needs.

The latest unit-linked pension plan launched by HDFC Life Insurance will help you do this — and more.

Under the plan, the premium is invested in units of the investment fund according to the choice of the policyholder. On vesting, the units will help the insured buy his retirement benefits.

In the event of an early death, the beneficiary’s kin receives the value of his units plus a lumpsum of Rs 1,000.

Premium could be paid quarterly, half-yearly or annually. The policy also offers a ‘single-premium’ option.

Minimum premium for regular payment is Rs 10,000 a year, and Rs 25,000 if you choose for the ‘single-premium’ option. You could increase the premium at your will by paying a minimum of Rs 5,000 a year.

The policy is completely unitised with a range of funds to match the needs and risk appetite of the policyholder. The insured can choose to invest in a liquid fund, secure managed fund, defensive managed fund and balanced managed fund.

What are the benefits of this policy? At the chosen vesting date, the unitised value will be available to secure pension benefits.

Subject to the prevailing regulations, a part of this value can be withdrawn in lumpsum and the remaining converted into an annuity at the rate then offered by the insurance company.

Alternatively, the insured may choose to buy an annuity issued by another insurance company.